Government Watch. Position paper on the smart tax administration system “iMAS”

The Lithuanian Free Market Institute examined draft amendments to the Law on Tax Administration, the Law on Value Added Tax and the Road Transport Code that are aimed at the implementation of a smart tax administration system “iMAS” in the State Tax Inspectorate.

In LFMI’s view, the system should not be implemented due to the following reasons:
1. The system is expensive to implement and may not be operational.
2. Due to a great variety in the complexity and functions of the software used by different economic operators, their data files may be incompatible with standard requirements of “iMAS”.
3. The proposed requirements pose a significant burden on small businesses.
4. It is expensive and time-consuming to reprogram sophisticated accounting software so that it would be compatible with “iMAS”.
5. The financial impact on businesses and possible alternatives to the system are not fully evaluated.
6. The proposed regulation is overlapping and will not reduce the administrative burden on businesses.

The full position paper (in Lithuanian) is available at